Page 50 - VIRANSH COACHING CLASSES

3.7 FUNCTIONS OF AN ENTREPRENEUR

1) Innovation:

An entrepreneur is basically an innovator. He introduces new combinations of means of
production. He must introduce new products or brings changes in the existing products.
Customers are satisfied with new products or new features in the existing products. Innovation
is also necessary to solve problems that arise in the business.
2) Determination of Objectives:
An entrepreneur has to determine the aims and objectives of the business. There may be
difference between primary and secondary objectives of the enterprise. He can change these
objectives as per the market situations.
3) Development of Market:
The entrepreneur has to find out different ways for marketing the products and services of his
enterprise. He can conduct surveys or research to understand the customer's demand. When the
markets are developed constantly, the demands of the consumers will increase.
4) New Technology:
In global world, everyday there is an invention of new technology. Introduction of new
technology will always result in growth of business e.g. new machinery, advanced technology,
new and scientific methods of production, etc.
5) Good Relations:
It is necessary to maintain healthy working atmosphere in an organization. It depends upon the
efficient relations between subordinates and superiors. Co-ordination among the employees is
the key of success.
6) Organizing Funds:
Entrepreneur needs to find out different financial resources because adequate and continuous
finance is always necessary for business. Good and honest relations with the investors is
necessary for every business.
7) Taking Decisions:
An entrepreneur has to take wise decisions for his enterprise. Timely and correct decisions are
also important and necessary for a proper business plan. He should always consider the pros
and cons before taking any business decision.

3.8 ENTREPRENEURSHIP DEVELOPMENT

3.8.1. Meaning
Entreprenuership is a purposeful activity of an individual or a group of associated individuals,
undertaken to initiate, maintain and aggrandize profit by production and distribution of economic
goods and services.

3.8.2 Characteristics of Entrepreneurship
Entrepreneurship is a process of setting up a new business organization. It is the process where
one decides to build a business career by finding the market options and mobilizing the available
resources. The following are the characteristics of entrepreneurship.

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